The Portland daily press., 1887-01-18
REVISION OF INSURANCE LAWS.
Report to the Massachusetts
Legislature.

BOSTON, Jan. 17.-lnsurance Commissioner
Tarbox to-day submitted to the legislature
his report on the resolve passed last year for
the revision and codification of the insurance
laws OF the State. In his work of revision
Tarbor says that parts of the old statutes
have been left out as useless or Objectionable,
and several new propositions of impo rtance
embodied. The statute to regulate ASSESS
ments OF life insurance is of so recent enact
ment 1t was deemed best to await fuller
development of its plan before attempting to
perfect laws for its regulation as a per-
manent system. That hereafter no company
shall be formed to do both fire and marine
insurance. No mutual marine company
shall organize with permanent fund. No
mutual fre company shall organize with or
acquire guaranty capital or shall insure on
the stock plan, or classify its risks. These
proposed amendments do not effect organ
lied companies, except that a maximum
dividend to the permanent fund of the share
holders is reduced to 10 per cent annually,
and reserve mutual fire company may ac-
cumulate from the profits denied from policy
holders limited to one per cent. of the
amount of insurance in force.
AS to mutual fire companies it is proposed
any such comsany may determine for itself
the contingent liability of its members sub
ject to limitation that such liability shall not
be less than the amount of the full mutual
premium.
The act Of 1875 authorizing the issue of per-
petual policies of fire insurance upon certain
classes Of property has not met with public
favor. The general revision of the standard
form af fire policies, the commissioner saws.
would call for much consideration, and he
has not attempted it. He advises a repeal
of the statute which requires local agents of
foreign companies to give bonds to the Com
monwealth for the payment of taxes, etc.
Amendments are suggested to prohibit favor
ltism whereby one person is enabled to OBJ
tain better terms on insurance than another;
also to ensure more clear exhibit of the fl
nancial condition of insurance companies.
Two important amendments to the life
insurance laws are contained in the revision.
The first removes the limitation to the exer-
else of the right and allows the policy holder
to abandon his insurance, and withdraw in
cash value of his policy less surrender or
indemnity charge any time after the pay
ment of five or more annual premiums
The surrender must be made on the anniver-
sary of the policy date. The second provides
that one who voluntarily insures his life may
at all times control and dispose of the estate
he so creates for the benefit of whomsoever
he choose. The commissioner proposes to
apply to mutual life insurance the same prin-
ciples and equalities as regards surplus dis
tribution to policy holders as the law applies
to mutual fire insurance In conclusion the
reports say: "The principle to govern leg
islation upon commercial subjects is in no
manner applicable to the subject of life in
surance. How far and in what manner the
changes of human life may be the basis of
contract and investment, is eminently mat
ter that the Commonwealth as conservator
OF social morals should decide"